Consider two countries with the following characteristics. Country Yin has no restrictions on bank branching and banks in Country Yin are permitted to offer investment and insurance products along with traditional banking services. In Country Yang, there are strict limits on branch banking and on the geographical spread of a bank's business. In addition, banks in Country Yang are not permitted to offer investment or insurance services. a. In which country do you think the banking system is more concentrated? O Country Yin O Country Yang b. In which country do you think the banking system is more competitive? O Country Yin O Country Yang c. In which country do you think, everything else being equal, banking products are cheaper? O Country Yin O Country Yang

Consider two countries with the following characteristics. Country Yin has no restrictions on bank branching and banks in Country Yin are permitted to offer investment and insurance products along with traditional banking services. In Country Yang, there are strict limits on branch banking and on the geographical spread of a bank's business. In addition, banks in Country Yang are not permitted to offer investment or insurance services. a. In which country do you think the banking system is more concentrated? O Country Yin O Country Yang b. In which country do you think the banking system is more competitive? O Country Yin O Country Yang c. In which country do you think, everything else being equal, banking products are cheaper? O Country Yin O Country Yang

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter15: The Federal Reserve System And Monetary Policy

Section: Chapter Questions

Problem 5AA

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